US Dollar Index Price Forecast: Rally pauses above 100.00 despite Fed dovish bets ease further
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.18% lower to near 100.00 during the European trading session on Thursday. The US Dollar (USD) faces slight selling pressure as the ongoing United States (US) federal shutdown has become the longest in history.
Financial market participants expect that the government shutdown could slow down the pace of public spending and the execution of federal projects, a scenario that is unfavorable for the economic outlook.
Meanwhile, Federal Reserve (Fed) dovish expectations for the December meeting have receded further after the release of the upbeat ADP Employment Change and the ISM Services PMI data for October on Wednesday.
The CME FedWatch tool shows that the probability of the Fed cutting interest rates by 25 basis points (bps) to 3.50%-3.75% in the December meeting has eased to 62.5% from 68.6% seen on Tuesday.
Source : Fxstreet.com
